Abstract
Recently, the hypermarket profitability is an important issue for the world wide retailing industry with vast literature was found on its definitions, measurements, and models of studied. In general, majority of related work showed that various methodologies and models have been applied to evaluate the profitability of hypermarket, where more dominants on financial and accounting methods. Specifically, estimate the hypermarket profitability are always dominating by financial and accounting methods and approaches with finale attention on maximizing the customer lifetime value (CLV). In fact, most of traditional measurement have been used are interest rate, chuck rate, lease, as well as income and consumptions of consumers. However, a little attention has been given to using others variables, as well as spatial based measurement although it has big potential to contributes on prospecting the profitability of hypermarket. In addition, continuously, financial or accounting variables has been improved and reused in different ways where the method itself in overall is still remains as before. The objective of this paper is to overview the weakness of financial and accounting methods with focused on theoretical and applications issues of estimating hypermarket profitability. Secondly, this paper is aimed to suggest geospatial method as alternative ways for bridged the gap of existing works regarding the estimations of hypermarket lifetime value. By using geospatial variables as well as spatial method, this work will contributes on establish new ways of estimated the CLV of the hypermarket where spatial platform is function to visualized the real situations of financial and accounting information as well as it emerge in the real marketplaces. In future, the use of geospatial method will be brings new hope on better understanding on CLV especially how CLV can estimated by both financial-accounting and spatial variables.
Keywords
- Financial-Accounting Methods Search this journal for Financial-Accounting Methods (opens in a new tab)
- Profitability Search this journal for Profitability (opens in a new tab)
- Lifetime Value Hypermarket Search this journal for Lifetime Value Hypermarket (opens in a new tab)
- Geospatial Search this journal for Geospatial (opens in a new tab)
References
- Adams, A. L., (2005). Find and keep the customers you want: The customer insight mandate. Chicago: Accenture Inc.,
- Berger, P. D. & Nasr, N. I. (1998). Customer lifetime value: Marketing models and applications. Journal of Interactive Marketing , 12(1), 17 - 30.
- Blattberg, R. C. & Deighton, J. (1996). Manage marketing by the customer equity test. Harvard Business Review , 74, 136-44.
- Carminati, A. & Trouvé, O. (2004). The CIES marketing study leveraging customer insight to achieve high performance. Chicago: Accenture & CIES.
- Doherty, M. (2005). Finding your spatial return on investment in local government. Intergraph Corporation: Mississauga, Ontario.
- Environmental System Research Institute (ESRI). (2007). GIS for retail business. GIS Best Practice (February 2007). California: ESRI.
- Epstein, M. J., Friedl, M. & Yuthas, K. (2008). Managing customer profitability: Determine which customers are most valuable to your organization. Harvard Business School: December, 2008.
- Graf, A. & Maas, P. (2008). Customer value from a customer perspective: A comprehensive review. Journal of Financial Business , 58, 1-20.
- Glady , N., Baesens , B. & Croux, C. (2009). A modified pareto/NBD approach for predicting customer lifetime value. Expert Systems with Applications, 36, 2062–2071.
- Gupta, S., Lehmann, D. R. & Stuart, J. A. (2004). Valuing customers. Journal of Marketing Research, 41(1), 7–18.
- Gupta, S. & Lehmann, D. R. (2003). Customer as assets. Journal of Interactive Marketing, 17(1), 9 - 24.
- Kumar, V., Lemon, K. N. & Parasuraman, A. (2006). Managing customers for value: An overview and research agenda. Journal of Service Research, 9, 87.
- Lenskold, J. (2003). Retention marketing profitability: ROI challenges influencing the retention versus acquisition debate. Marketing Profitability White Paper Series. Manasquan, New Jersey: Lenskold Group Inc.
- Malthouse, E. C. & Blattberg, R. C. (2005). Can we predict customer lifetime value? Journal of Interactive Marketing , 19(1), 2 -16.
- Nunes, P. & Johnson, B. (2004). Mass affluence: Seven new rules of marketing to today’s consumer. Boston: Harvard Business School Press.
- Pick, J. B. (2008). Geo-Business: GIS in the digital organization. Singapore: John Wiley & Sons, Inc.,
- Pauler, G., Trivedi, M. & Gauri, D. K. (2009). Assessing store performance models. European Journal of Operational Research , 197, 349 - 359.
- Recklies, D. (2006). PEST- Analysis, www.Themanager.org.
- Reichheld, F. F. & Teal, T. A. (2001). Loyalty effect: the hidden force behind growth, profits, and lasting value. Boston: HBS press Book.
- Reinartz, W. J. & Kumar, V. (2000). On the profitability of long-life customers in a non-contractual setting: An empirical investigation and implications for marketing. Journal of Marketing , 64(4), 17 - 35.
- Rust, R. T., Lemon, K. N. & Zeithaml, V. A. (2004). Return on marketing: Using customer equity to focus marketing strategy. Journal of Marketing, 68,109 -127.
- SAP, A. G. (2008). Maximizing store profitability with sap for retail: Levers that improve store performance. Retrieved on January 28, 2009, from: http://www.sap.com/retail.
- Srivastava, R. K., Shervani, T. A. & Fahey, L. (1998). Market-based assets and shareholder value: A framework for analysis. Journal of Marketing , 62, 2-18.
- Toppen, F. & Wapenaar, H. (1994). GIS in business: Tools for marketing analysis. The Hague: EGIS Foundation.
- Venkatesan, R. & Kumar V. (2004). A customer lifetime value framework for customer selection and optimal resource allocation strategy. Journal of Marketing, 68, 106-125.
- Zhao, L. (2000). Integrating rank correlation techniques with GIS for marketing analysis. Geo Computation 2000 Sydney. School of Geography, the University of New South Wales.
Downloads
No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.
How to Cite
Share this article
License
Copyright (c) 2013 Abdul Manaf Bohari, Ruslan Rainis, Malliga Marimuthu (Author)

This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
Keywords
- Financial-Accounting Methods Search this journal for Financial-Accounting Methods (opens in a new tab)
- Profitability Search this journal for Profitability (opens in a new tab)
- Lifetime Value Hypermarket Search this journal for Lifetime Value Hypermarket (opens in a new tab)
- Geospatial Search this journal for Geospatial (opens in a new tab)
Section
Published
Submissions
Have research to publish? Information Management and Business Review welcomes submissions.
Make a Submission